Thimar issues clarification on contracts signed by former board members

One of Thimar’s branches

Thimar Development Holding Co. issued a clarification regarding the contracts concluded by the previous board of directors, in which the conviction was issued for violating the financial market system. 

In a statement on Tadawul, the company stated that the contracts concluded included a share sale and transfer contract in Thimar Markets and Wasmi Agricultural Co. (Thimar Wasmi), concluded on Dec. 29, 2014. 

According to Article 5, the first party, Thimar Development, undertook to transfer ownership of all real estate and movable assets owned by it and its subsidiaries in 2015 to Thimar Wasmi (Associate), although Thimar Development owns only 30% of it. Thimar Wasmi was liquidated by a court order. 

An investment and leasing contract was signed to construct a commercial complex on May 10, 2015. The 15-year contract was valued at SAR 1.8 million. The project was withdrawn from the company in 2019 for failing to implement it as stipulated in the contract. Thimar was charged with a loss of SAR 15 million without documents justifying this recorded loss. 

A liability lawsuit was filed against the former board at the request of the shareholders, as mentioned in the company’s announcement on March 14, 2023. The action was filed to protect Thimar’s funds and recover shareholders’ rights. The lawsuit is still pending with the Committee for the Resolution of Securities Disputes (CRSD). 

The company's board of directors confirmed that it would take and follow up all legal measures to preserve the company and shareholders’ rights, aiming to restore the company to its normal operations. 

According to data compiled by Argaam, Thimar issued a clarification about the General Secretariat of the Committees for Resolution of Securities Disputes’ (GS-CRSD) announcement on July 6, convicting the former Managing Director and other board members (who exercised their duties before July 2021) of violating the market rules and executive regulations.   

The GS-CRSD announced its final decision against the former managing director and several former board members, convicting them for violating the market rules and imposing financial fines ranging from SAR 50,000 to 300,000, as well as a work ban in Tadawul-listed companies.